PERNOD RICARD - Notice of meeting 2020

6. THE GROUP IN 2019/20

Europe € million

30.06.2019 30.06.2020

Reported growth

Organic growth (1)

Net sales

2,672

2,532

(140)

-5%

(159)

-6%

Gross margin after logistics expenses

1,643

1,519

(124)

-8%

(131)

-8%

Advertising and promotion expenses

(415)

(349)

66

-16%

71

-17%

Contribution after advertising & promotion expenses

1,228

1,169

(58)

-5%

(60)

-5%

PROFIT FROM RECURRING OPERATIONS -1% Organic growth is defined in note 5.5 - Definitions and reconciliation of alternative performance indicators with IFRS indicators of the Management Report of the FY20 (1) Universal Registration Document. 617 605 (12) -2% (7)

Organic net sales growth of Strategic International Brands

Organic growth (1) in net

Volumes 30.06.2019

Volumes 30.06.2020

sales Volume growth

Price/mix

In million of 9-litre cases

Absolut

11.1

10.3

-11%

-7%

-4%

Chivas Regal

4.5

3.7

-17%

-19%

2%

Ballantine’s

7.6

7.2

-8%

-5%

-3%

Ricard

4.4

4.2

-6%

-6%

-1%

Jameson

7.7

7.6

-1%

-2%

0%

Havana Club

4.6

4.2

-6%

-8%

2%

Malibu

3.7

3.9

5%

5%

0%

Beefeater

3.2

3.1

-7%

-4%

-3%

Martell

2.6

2.0

-20%

-24%

5%

The Glenlivet

1.2

1.2

2%

-3%

4%

Royal Salute

0.2

0.2

-2%

-7%

5%

Mumm

0.7

0.6

-13%

-13%

0%

Perrier-Jouët

0.3

0.3

-12%

-21%

8%

STRATEGIC INTERNATIONAL BRANDS -3% Organic growth is defined in note 5.5 - Definitions and reconciliation of alternative performance indicators with IFRS indicators of the Management Report of the FY20 (1) Universal Registration Document. 51.9 48.3 -10% -7%

Net sales for FY20 totalled €8,448 million, with an organic decline of -9.5% (-8.0% reported, including a favourable foreign exchange impact due chiefly to the appreciation of the US dollar against the euro): Net sales growth in the first half was robust but the second half was impacted by Covid-19. For FY20, the trends by region were: Americas: -6%, with good resilience in USA (1) and Canada in slight y growth, but double-digit decline in Latin America and Travel Retail; Asia-RoW: -14%, driven mainly by China, India and Travel Retail, y against a high basis of comparison; Europe: -6%, overall good resilience with Germany, UK and Eastern y Europe growing and partially offsetting declines in Travel Retail, Spain and France.

Key categories were impacted by the pandemic, but Specialty Brands performed well: Strategic International Brands: -10%, after broad-based growth in the y first half, mainly driven by Martell, Chivas Regal, Absolut and Ballantine’s; Strategic Local Brands: -9%, with modest growth at the end of the y first nine months, but a strong decline in the fourth quarter, mainly due to Seagram's Indian whiskies, and amplified by the high comparison basis; Specialty Brands: +7%, despite Covid-19, thanks to more favourable y geographic exposure, with dynamic growth of Lillet, Altos and Redbreast; Strategic wines: -4%, due mainly to Jacob’s Creek, and despite the y growth of Campo Viejo. Fourth quarter net sales were €1,238 million in FY20, with an organic decline of -36.2% (-37.9% reported), strongly impacted by the progression of the Covid-19 pandemic throughout the world, particularly for Travel Retail and On-trade. The Off-trade held up better than expected, notably in the USA and Europe.

(1) Sell-out at +2% (internal estimate).

33

Pernod Ricard Notice of Meeting 2020